City Council Report
City Council Meeting: February 26, 2013
Agenda Item: 3-D
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Purchase Order Amendment for Street Maintenance Slurry Material
Staff recommends that the City Council amend Purchase Order No. 342316-OP with Petrochem Manufacturing, Inc. (PMI), a California-based company, in the amount of $338,333.76 for the purchase and delivery of slurry materials and authorize this as a sole source purchase. This will result in a total purchase order amount of $434,333.76, with future year funding contingent on Council budget approval.
In July 2012, the City issued purchase order 342316-OP in the amount of $54,000 to PMI to provide rubberized emulsion aggregate slurry (REAS) materials and delivery for the rehabilitation of the asphalt walkway in Palisades Park and in various alleys. In May 2012, staff received sole source authorization to purchase REAS, an innovative rubberized slurry product from PMI that is centrally mixed in their plant and ready for application when it reaches the worksite. This product qualified as a soul source product because of the manufacturing technique used in its production. Other vendors have verified that PMI is currently the only manufacturer with the ability and capacity to manufacture a REAS (rubberized emulsion aggregate slurry) through a central mix process, creating a product delivered to the work site ready for application. The central mix process is an in-plant mix process that provides accurate, tested mixes that are warranted for up to 5 years. Other slurry seals are available, but none have this unique pre-mixed process. Others are delivered and staff must mix the slurry at the site. This product keeps 162 tires out of landfills per approximately 70,000 sq. ft. of asphalt surface paved. Resurfacing alleys with a rubberized slurry seal can be accomplished with minimal preparation, and more alleys can be renovated in less time, extending the life of their surface at a fraction of the cost of demolishing and laying a new asphalt surface. As a result, work efforts are shifting toward alley renovation, rather than replacement.
A change order in the amount of $42,000 was processed in November 2012 for additional slurry materials to re-surface an additional eleven alley segments. The cumulative purchase order total year-to-date is $96,000. Staff has expended $88,208.43 with PMI in FY2012-13 with a remaining balance of $7,791.57 in purchase order 342316-OP. Staff recommends an amendment to purchase order 342316-OP in the amount of $338,333.76 to cover existing commitments and purchase additional material for the remainder of FY2012-13 ($88,333.76) and for FY2013-14 ($250,000). The additional material will be used to re-surface another 20 alleys in FY 2012-13, per Attachment A, and in FY2013-14, staff anticipates re-surfacing an additional 66 alleys, at a cost of $250,000. This would result in a total purchase order amount of $434,333.76 with PMI.